Residential Energy Storage

Residential Energy Storage Market by Power Rating (10-29 kW, 3–6 kW, 6–10 kW), Technology (Lead–Acid, Lithium-Ion), Connectivity Type, Operation Type, Ownership Type - Global Forecast 2024-2030

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[195 Pages Report] The Residential Energy Storage Market size was estimated at USD 5.18 billion in 2023 and expected to reach USD 5.54 billion in 2024, at a CAGR 7.51% to reach USD 8.60 billion by 2030.

Residential Energy Storage Market
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Residential energy storage refers to using energy storage systems or devices within homes and residential properties to store electricity for later use. These systems are developed to reserve excess electricity generated from various sources, such as solar panels, wind turbines, or the grid, and then release that stored energy when needed. The primary goal of residential energy storage is to increase energy independence, improve energy efficiency, and provide backup power during outages. Increasing awareness regarding environmental conservation and climate change has led to consumers' rising need for clean, sustainable energy solutions. Government policies and investments promoting renewable energy adoption contribute to market growth. Incorporating residential energy storage solutions into the smart grid network can further enhance its functioning while providing additional revenue streams for businesses operating within this space. However, high capital costs associated with installing these systems, lack of standardization, and related technical issues hamper the market demand. Advancements in lithium-ion battery technologies and the development of smart grid infrastructure that integrates information technology with power generation create a lucrative market opportunity in the residential energy storage market.

Regional Insights

The Americas has a significant landscape in the residential energy storage market owing to federal government initiatives and funding for innovative home battery projects to support renewable energy integration and grid reliability. Increased occurrences of natural disasters have heightened concerns around grid resilience, contributing to higher demand for energy storage solutions. The EMEA region has seen significant growth in residential energy storage deployment due to the push for renewable energy adoption and efforts to improve grid stability. European countries offered financial incentives, subsidies, and tax credits to encourage homeowners to invest in residential energy storage systems. These incentives varied by country and were often designed to promote self-consumption of solar energy and enhance grid stability. In the APAC region, the presence of significant players in the residential energy storage market, government incentives, and subsidies have played a crucial role in driving the adoption of residential energy storage. The government launched a subsidy program to encourage homeowners to install lithium-ion battery systems, contributing to overall market expansion in the APAC region.

Power Rating: 10-29 kW power rating providing highest capacity and performance

The 10-29 kW power rating caters to large residential properties with high energy consumption rates. This range is suitable for homeowners who require substantial backup power during outages or those seeking to maximize their self-consumption of solar-generated electricity. The mid-power segment ranges from 3-6 kW and primarily targets average-sized households with moderate energy demands. It covers homeowners who aim to reduce their dependence on grid-supplied electricity while benefiting from lower utility bills. The low-power segment ranges from 6-10 kW and is designed for small-to-medium-sized residential properties with average-to-low energy consumption patterns. This category serves homeowners who seek backup power during outages or want to store solar-generated electricity for evening usage.

Technology: Proliferating use of lead-acid batteries to provide cost-effective and short-term energy storage solutions

Lead-acid batteries have been used for over a century due to their low-cost production and recycling capabilities. These batteries suit homeowners who prioritize affordability or require short-term backup power solutions. Lithium-ion batteries are increasingly used as they provide higher energy density, longer lifespan, and lower maintenance requirements than Lead-acid counterparts. These batteries are increasingly used by consumers seeking long-term investments with better performance and sustainability.

Connectivity Type: Penetrating utilization of on-grid connectivity systems to efficiently manage electricity consumption

Off-grid energy storage systems are designed for households in remote areas with limited or no access to the grid. These systems offer complete independence from utility providers by using sources of renewable energy such as solar panels, wind turbines, and battery storage units. On-grid energy storage systems are connected to the utility grid, allowing homeowners to efficiently manage their electricity consumption by storing surplus energy generated from renewable sources or during off-peak hours. These systems are developed to store extra electricity when it is abundant and then feed that stored energy back into the grid when needed.

Operation Type: Solar & storage systems provide energy independence and reduce greenhouse gas emissions

Solar and storage systems are integrated solutions that combine solar photovoltaic (PV) panels with energy storage systems (ESS) in homes. These systems are designed to generate electricity from solar energy, store excess energy in batteries, and provide homeowners with several benefits, including energy cost savings, backup power during outages, and increased energy independence. Standalone Systems are energy storage solutions that primarily store electricity from the grid or a generator and can be used during peak demand hours or as backup power during outages. These systems can provide a reliable emergency power supply during grid outages or natural disasters.

Market Dynamics

The market dynamics represent an ever-changing landscape of the Residential Energy Storage Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Disruption Analysis

The market disruption analysis delves into the core elements associated with market-influencing changes, including breakthrough technological advancements that introduce novel features, integration capabilities, regulatory shifts that could drive or restrain market growth, and the emergence of innovative market players challenging traditional paradigms. This analysis facilitates a competitive advantage by preparing players in the Residential Energy Storage Market to pre-emptively adapt to these market-influencing changes, enhances risk management by early identification of threats, informs calculated investment decisions, and drives innovation toward areas with the highest demand in the Residential Energy Storage Market.

Porter’s Five Forces Analysis

The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the Residential Energy Storage Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.

Value Chain & Critical Path Analysis

The value chain of the Residential Energy Storage Market encompasses all intermediate value addition activities, including raw materials used, product inception, and final delivery, aiding in identifying competitive advantages and improvement areas. Critical path analysis of the <> market identifies task sequences crucial for timely project completion, aiding resource allocation and bottleneck identification. Value chain and critical path analysis methods optimize efficiency, improve quality, enhance competitiveness, and increase profitability. Value chain analysis targets production inefficiencies, and critical path analysis ensures project timeliness. These analyses facilitate businesses in making informed decisions, responding to market demands swiftly, and achieving sustainable growth by optimizing operations and maximizing resource utilization.

Pricing Analysis

The pricing analysis comprehensively evaluates how a product or service is priced within the Residential Energy Storage Market. This evaluation encompasses various factors that impact the price of a product, including production costs, competition, demand, customer value perception, and changing margins. An essential aspect of this analysis is understanding price elasticity, which measures how sensitive the market for a product is to its price change. It provides insight into competitive pricing strategies, enabling businesses to position their products advantageously in the Residential Energy Storage Market.

Technology Analysis

The technology analysis involves evaluating the current and emerging technologies relevant to a specific industry or market. This analysis includes breakthrough trends across the value chain that directly define the future course of long-term profitability and overall advancement in the Residential Energy Storage Market.

Patent Analysis

The patent analysis involves evaluating patent filing trends, assessing patent ownership, analyzing the legal status and compliance, and collecting competitive intelligence from patents within the Residential Energy Storage Market and its parent industry. Analyzing the ownership of patents, assessing their legal status, and interpreting the patents to gather insights into competitors' technology strategies assist businesses in strategizing and optimizing product positioning and investment decisions.

Trade Analysis

The trade analysis of the Residential Energy Storage Market explores the complex interplay of import and export activities, emphasizing the critical role played by key trading nations. This analysis identifies geographical discrepancies in trade flows, offering a deep insight into regional disparities to identify geographic areas suitable for market expansion. A detailed analysis of the regulatory landscape focuses on tariffs, taxes, and customs procedures that significantly determine international trade flows. This analysis is crucial for understanding the overarching legal framework that businesses must navigate.

Regulatory Framework Analysis

The regulatory framework analysis for the Residential Energy Storage Market is essential for ensuring legal compliance, managing risks, shaping business strategies, fostering innovation, protecting consumers, accessing markets, maintaining reputation, and managing stakeholder relations. Regulatory frameworks shape business strategies and expansion initiatives, guiding informed decision-making processes. Furthermore, this analysis uncovers avenues for innovation within existing regulations or by advocating for regulatory changes to foster innovation.

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Residential Energy Storage Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Residential Energy Storage Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments
  • LG Energy Solution Launches Prime+ ESS in the U.S.

    LG Energy Solutions has introduced its Prime ESS residential energy storage product in the United States. This product showcases an advanced lithium iron phosphate battery and is accompanied by a 10-year warranty. This energy storage system allows customers to enjoy reduced electricity bills and take advantage of potential incentives. [Published On: 2023-09-05]

  • Lunar Energy Announces New Residential Energy Storage System

    Lunar Energy has introduced a cutting-edge residential energy storage cabinet system to provide homeowners with a highly efficient and dependable electricity and heating solution while reducing reliance on peak grid usage. This innovative system incorporates multiple batteries, an inverter, advanced battery-management electronics, and convenient connection points for solar PV arrays, generators, and other renewable energy sources. [Published On: 2023-06-22]

  • JinkoSolar Signs Strategic Distribution Agreement for Residential Storage Solution with V. Kafkas SA

    Jinko Solar has entered into a strategic distribution agreement with V. Kafkas SA in residential energy storage. This agreement allows Jinko Solar to provide a top-notch solution for residential energy storage. This agreement aims to reinforce the market presence and influence of both companies in the residential energy storage sector. [Published On: 2023-06-20]

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Residential Energy Storage Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Residential Energy Storage Market, highlighting leading vendors and their innovative profiles. These include ABB Ltd., Alpha ESS Co., Ltd., BYD Company Limited, Consolidated Electrical Distributors, Inc., Covestro AG, Delta Electronics, Inc., East Penn Manufacturing Co. Inc., Eaton Corporation, EDF Energy Group, Generac Power Systems, Inc, HAIKAI, Hitachi Chemical Co. Ltd., Huawei Technologies Co. Ltd., LG Chem Ltd., Panasonic Corporation, Samsung SDI Co., Ltd., Schneider Electric SE, Siemens AG, Sonnen GmbH, Sungrow Deutschland GmbH, SunPower Corporation, Sunrun Inc., Tesla, and TotalEnergies.

Residential Energy Storage Market - Global Forecast 2024-2030
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Market Segmentation & Coverage

This research report categorizes the Residential Energy Storage Market to forecast the revenues and analyze trends in each of the following sub-markets:

  • Power Rating
    • 10-29 kW
    • 3–6 kW
    • 6–10 kW
  • Technology
    • Lead–Acid
    • Lithium-Ion
  • Connectivity Type
    • Off-Grid
    • On-Grid
  • Operation Type
    • Solar & Storage Systems
    • Standalone Systems
  • Ownership Type
    • Customer Owned
    • Third-Party Owned
    • Utility Owned

  • Region
    • Americas
      • Argentina
      • Brazil
      • Canada
      • Mexico
      • United States
        • California
        • Florida
        • Illinois
        • New York
        • Ohio
        • Pennsylvania
        • Texas
    • Asia-Pacific
      • Australia
      • China
      • India
      • Indonesia
      • Japan
      • Malaysia
      • Philippines
      • Singapore
      • South Korea
      • Taiwan
      • Thailand
      • Vietnam
    • Europe, Middle East & Africa
      • Denmark
      • Egypt
      • Finland
      • France
      • Germany
      • Israel
      • Italy
      • Netherlands
      • Nigeria
      • Norway
      • Poland
      • Qatar
      • Russia
      • Saudi Arabia
      • South Africa
      • Spain
      • Sweden
      • Switzerland
      • Turkey
      • United Arab Emirates
      • United Kingdom

This research report offers invaluable insights into various crucial aspects of the Residential Energy Storage Market:

  1. Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
  2. Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
  3. Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
  4. Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
  5. Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.

Additionally, the report addresses key questions to assist stakeholders in making informed decisions:

  1. What is the current market size and projected growth?
  2. Which products, segments, applications, and regions offer promising investment opportunities?
  3. What are the prevailing technology trends and regulatory frameworks?
  4. What is the market share and positioning of the leading vendors?
  5. What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?

Table of Contents
  1. Preface
  2. Research Methodology
  3. Executive Summary
  4. Market Overview
  5. Market Insights
  6. Residential Energy Storage Market, by Power Rating
  7. Residential Energy Storage Market, by Technology
  8. Residential Energy Storage Market, by Connectivity Type
  9. Residential Energy Storage Market, by Operation Type
  10. Residential Energy Storage Market, by Ownership Type
  11. Americas Residential Energy Storage Market
  12. Asia-Pacific Residential Energy Storage Market
  13. Europe, Middle East & Africa Residential Energy Storage Market
  14. Competitive Landscape
  15. Competitive Portfolio
  16. List of Figures [Total: 26]
  17. List of Tables [Total: 460]
  18. List of Companies Mentioned [Total: 24]
The Growing Importance of Residential Energy Storage in Promoting Renewable Energy and Sustainability
October 9, 2023
BLOG
The Growing Importance of Residential Energy Storage in Promoting Renewable Energy and Sustainability
With rising global concerns about environmental conservation, the adoption of renewable energy sources has been steadily gaining momentum. The use of solar rooftop systems is one example of this, with many households now opting to install them to reduce their carbon footprint and utility costs. However, the intermittent nature of solar energy means that it is not always readily available when needed. This is where residential energy storage comes in, providing a viable solution to the inconsistency issue. This blog post delves into the increasing importance of residential energy storage in promoting renewable energy use and sustainability.

Reducing Peak Demand on the Grid:

As households continue to adopt solar rooftop systems, it becomes imperative to find storage solutions for the excess energy produced during peak periods. Residential energy storage systems offer an innovative solution to this challenge by storing any excess energy generated and supplying it back to the home or the grid when it is needed. This mitigates the strain on the grid during peak periods and provides a more sustainable solution to power demand.

Supporting Decarbonization and Reduction of Carbon Footprint:

Energy storage systems go hand in hand with renewable energy sources, as they enable the storage and use of electricity generated through solar and other renewable sources. This reduces the dependence on traditional carbon-based sources of electricity and, in turn, plays a key role in promoting decarbonization efforts. Additionally, residential energy storage helps households reduce their carbon footprint and energy bills, making it an attractive proposition for homeowners seeking to make an impact on the environment and save on costs.

Enhancing Resilience and Reliability of Energy Supply:

Energy storage systems can provide several benefits to the household beyond powering appliances during outages. They also provide an auxiliary power source that can support homeowners during times of emergencies or external events such as natural disasters or power outages. In addition, households with energy storage systems can benefit from reduced electricity bills and increased energy resilience, making it easier to manage and maintain their power supply.

Support for Grid-Tied and Off-Grid Systems:

Residential energy storage can be used to support grid-tied as well as off-grid solar systems. Grid-tied systems allow homeowners to use and store solar power during non-peak periods, reducing reliance on energy supplied by the grid. On the other hand, off-grid systems are not attached to the grid and are self-sufficient. With residential energy storage, homes with off-grid systems can store any excess solar power generated during the day and use it at night or when there is no sun, while grid-tied systems can use the stored energy to reduce reliance on the grid during peak periods.

Cost-Effective and Easy to Install:

Finally, residential energy storage systems are becoming increasingly cost-effective and easy to install, which makes them a viable option for homeowners seeking to reduce their carbon footprint and energy bills. The decrease in the cost of renewable energy sources has also made it more affordable to install and maintain solar rooftop systems, which can be combined with energy storage to provide a complete solution.

The adoption of renewable energy sources, including solar rooftop systems and energy storage, is poised to increase in the coming years, thanks to its sustainability benefits and cost savings. Residential energy storage has a critical role to play in this transition, providing a way to store and use renewable energy effectively and sustainably. By reducing peak demand on the grid, supporting decarbonization, enhancing resilience and reliability, as well as supporting grid-tied and off-grid systems, residential energy storage is a game-changer that has redefined the energy landscape for the better.

Frequently Asked Questions
  1. How big is the Residential Energy Storage Market?
    Ans. The Global Residential Energy Storage Market size was estimated at USD 5.18 billion in 2023 and expected to reach USD 5.54 billion in 2024.
  2. What is the Residential Energy Storage Market growth?
    Ans. The Global Residential Energy Storage Market to grow USD 8.60 billion by 2030, at a CAGR of 7.51%
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    Ans. Most reports are fulfilled immediately. In some cases, it could take up to 2 business days.
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